There was little good news out of Europe overnight, when several key countries (Germany, France, Greece and Portugal) reported their Q1 GDP, but what good news did come, namely that Germany avoided a double dip, with Q1 GDP printing at 0.5% on expectations of a 0.1% move, has for now saved the EURUSD and the futures. Why the growth: according to the German statistics office, net trade drove 1Q growth (thank you weaker EUR); domestic consumption rose in 1Q while investment declined in 1Q. The sellside community was quick: "Germany’s 1Q numbers show how EMU’s biggest economy is weathering debt crisis", Newedge said in a note. Then there was everyone else: Italian GDP contracted by 0.8%, more than consensus of 0.7%, the most in 3 years. Broadly, the Eurozone GDP avoided a technical recession with GDP printing at 0.0% on estimates of -0.2%. But as the PMI vs GDP chart below shows, this razor thin escape will hardly be repeated in Q2. Greek GDP declined by 6.2%, Portugal down by 0.1%, Holland down -0.2%, and so on. The well known split in Europe between Germany and everyone else continues, and just as we pointed out yesterday for the US: any "decoupling" is always temporary, and eventually catches up with the decouplee. Finally, proving that not all is well even in Germany, the ZEW Investor Confidence for May printed at nearly half expectations of 19, or 10.8, and down from 23.4.